BC Partners Credit, the credit arm of alternative asset management firm BC Partners, and Riddell, a designer and manufacturer of football helmets and other sports protection products, announced a partnership. As part of the partnership, BC Partners made a $400 million investment in Riddell, with the investment including convertible preferred equity and debt.
Founded in 1929 and based in Des Plaines, IL, Riddell has been serving the football equipment market and sports community for nearly a century. The company also serves as the exclusive licensee of the NFL for collectible helmets and maintains promotional rights with the league as an authorized supplier of helmets worn by more than 77% of NFL players.
BC Partners’ $400 million investment in Riddell will empower the company to accelerate innovation and make investments in the business for the benefit of all stakeholders. BC Partners will join Riddell’s board, working closely with Riddell’s management team and committed investors, including majority investor Fenway Partners. Riddell will refinance certain existing debt and provide a dividend to current investors as part of the transaction.
“From its market leadership, attractive financial profile and differentiated portfolio, Riddell has demonstrated it is built for sustained success,” Ted Goldthorpe, head of BC Partners Credit, said. “We are pleased to have structured an investment that is customized for Riddell as the company embarks on an exciting growth trajectory with increased investments in research and product development, strategic partnerships and a best-in-class distribution platform. Dan [Arment] and the entire Riddell team are exceptional, and we are excited to partner with them.”
“Riddell proudly welcomes BC Partners as advisors and investors in our business,” Arment, who serves as president and CEO of Riddell, said. “We clearly maintain a shared vision for maximizing Riddell’s role in the rapidly evolving products and services landscape within football and sports. This alignment will ultimately strengthen Riddell’s service to our customers, drive increased financial performance, and deliver value for our investors, including BC Partners and Fenway Partners.”
“We welcome BC Partners to the Riddell team and look forward to working with them to drive continued innovation and growth,” Peter Lamm, co-founder and managing partner of Fenway Partners, said. “With the best management team in the industry, Riddell is well positioned to deliver outstanding performance for athletes and value for all of its investors.”
Three Ocean Partners served as the sole financial advisor to BC Partners Credit on both the preferred and debt financing, and King & Spalding acted as legal advisor.
UBS Investment Bank and Baird served as financial advisors to Riddell, and Lowenstein Sandler acted as the legal advisor to the company in connection with the transaction.
